Effects of On‐Demand Product Adjustments on Firm's Pricing and Product Strategies

In many markets, consumers have time‐varying needs for product or service quality. Recent technology advances equip firms with the on‐demand product‐adjustment capability (OPAC), which allows them to efficiently process customers' requests for short‐term (e.g., daily or hourly) changes of service quality to meet their time‐varying demands. This paper examines how OPAC affects a firm's optimal pricing and product‐line decisions in a market with...